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Fragmented Industries and Consolidated Industries

Distinguish between a fragmented and consolidated industry, and describe examples of each.

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Question: Distinguish between a fragmented and consolidated industry, and describe examples of each.

A fragmented Industry is one in which no single organization has major control of the market share to influence the industry's direction. In other words, these industries are those in which competition is manageable, or in which consumers benefit because they thrive on the competition between organizations in the industry. Fragmented industries generally provide comparative advantages, however they are fragmented due to 1) low barriers of entry (costs to enter the market is minimal thus it is easier to compete), 2) lack of standardization since most of the organizations are competing with identical products, 3) highly specialized market( products and services are highly specialized). An example of a ...

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This solution compares and contrasts fragmented industries with consolidated industries, providing examples of each.

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